Twin Cities Residential Construction Slower in May, 2014

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Residential construction permitting activity continued to show signs of slowing for the month of May, primarily in multi-family construction. Permits for the month were down about seven percent over May 2013 while units were down by 33 percent. Year-to-date, permits are also down by a bit over one percentage point, while total units permitted in 2014 were just 1.2 percent higher than at this point last year.

According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 421 permits issued for a total of 519 units during four comparable weeks in the month of May, 2014.  Year-to-date, there were 1,855 permits issued for a total of 3,332 units.

“The housing recovery has not been able to get momentum yet this year,” said Shawn Nelson, Builders Association of the Twin Cities 2014 president and president of New Spaces. “The incredibly bad winter weather slowed construction, financing is still tight for consumers — particularly first-time buyers — and the impact and uncertainty surrounding the Governor’s mounting regulatory proposals, such as the billion-dollar home indoor sprinkler mandate, are providing significant challenges for consumers and builders.

“On the positive side, our builders report strong consumer demand and activity. And if you look behind the numbers, single-family home construction and traditional home sales in the existing market both continue to outpace 2013.” Nelson said. He added, “We really need to address the unsustainable regulatory costs and credit crunch so people can buy affordable, safe, and high-quality new houses.”

Inver Grove Heights took the top spot in permit activity for the month, permitting 72 units (66 units in one multi-family building). Woodbury ranked second with 41 units permitted, followed by Blaine with 40 and Maple Grove with 33 and Lakeville took the fifth spot with 28 units permitted.

Please download the data chart below.

More information:
Wendy Danks, 651-697-7565